Sold Business Vehicle - where do I place the sale on Form 4797

[taxesohmy2017]

Hello,

I Purchased my business vehicle back in 2014 Price $33,302 sold it in 2019 for $21,000.  Accumulated Depr came to $32,342.  I am showing a gain of $20,040.  I used the MACRS 5 yrs.  I did not use Section 179 at all.  My question is; on my 1120S Form 4797 where would I show sale and recapture of my business vehicle.  There are 4 parts to choose to from and I am not sure if it goes on Part I, Part II, Part III or Part IV.

I am S Corp so I am filing a 1120S return.  Now since I am showing a sale of asset, from my understanding the gain should go directly onto my K-1 and not appear on the 1120S on line 4 Net gain is that correct?

On Form 4797, If I select Part I the gain of $20,040 appears on K-1 Line 9 Net Gain Section 1231, if I select Part II Ordinary Gain/Losses, the amount of $20,040 appears on Line 4 on my 1120S which adds to my profit but does not appear on K-1.  If select Part III 1245 the gain still shows up on my 1120S on line 4. If I select Part III 1250, 1252, 1254 or 1255 the gain $20,040  appears on K-1 on Line 9 and removed from Line 4 on 1120S.

Not sure which Part of the Form 4797 I select. And lastly if I do have to go with Part III which section do I go with 1245, 1250, 1252, 1254 or 1255?

Lastly when my gain was calculated can I say that my Depreciation was recaptured at that point? It does appear on Depreciation allowed or allowable? Cost $33,302, Accum Depr $32,342, Sold for $21,000

$32,342+21,000 = $53,342 - $33,302 = $20,040.00

Thank you in advance for assistance.

[JamesG1]

A vehicle would be reported in Part III of the 4797 and reported as 1245 property.

The depreciation is recaptured on line 22 of the form 4797.

[taxesohmy2017]

Thank you JamesG1 for your quick response.  Follow up question...

I placed the sale of the vehicle on Part III Section 1245 per your advice.  The gain now appears on Line 4 Net Gain from Form 4797 of my 1120S return which now shows a profit on the 1120S, but doesn't anything go on the K-1 showing the sale of the vehicle or showing the deprecation recapture that needs to be pass through onto the shareholders personal tax return? Right now the only item appearing on my K-1 is Line 1 Ordinary Income (Profit) of $21,128.  I thought I would need to have something appear on my K-1 either on line 9 (Net LT Gain) or on line 12 (Net Section 1231 Gain - Form 4797) showing the actual gain of $20,040 of the vehicle and the depreciation I recaptured of $32,342 and that would transfer over onto my personal 1040 tax return on a schedule D for the Capital gain of $20,040 and pay tax on the Depreciation Recapture of $32,342 on Form 4797 on my person tax return - am I wrong thinking that?  

Here is what my 4797 looks like

Line 20 Gross Price $21,000

Line 21 Cost or other basis $33,302

Line 22 Deprec. $32,342

Line 23 Adjusted Basis $960

Line 24 Total Gain $20,040

Summary of Part III Gains

Line 30 Total Gains $20,0040

Line 31 Add property columns A through D $20,040